Macroeconomic Interpretation: The U.S. November inflation data released last night was largely in line with expectations, triggering a series of market reactions. The CPI data for November showed a nominal CPI year-on-year increase of 2.7%, up 0.1 percentage points from the previous value in October. This marks the first time since March that the nominal CPI has accelerated in year-on-year growth for two consecutive months. This data aligns with market expectations and further strengthens traders' anticipation of a 25 basis point rate cut by the Federal Reserve next week, while also slightly increasing bets on continued rate cuts in January. However, the general view on Wall Street suggests that rate cuts may pause in January. This reflects a certain divergence in market expectations regarding adjustments to the Federal Reserve's monetary policy, indicating that the market is closely monitoring economic data and policy trends to seek clearer investment directions. The U.S. November inflation data meeting expectations has somewhat stabilized the market's judgment on the economic fundamentals. The expectations for the Federal Reserve's rate cuts are influenced, and the adjustments in market expectations reflect a comprehensive consideration of economic growth and inflationary pressures.
In the stock market, U.S. stocks showed significant divergence. The Dow Jones fell by 0.22%, while the S&P 500 index rose by 0.82%, and the Nasdaq performed even stronger, increasing by 1.77%, breaking through 20,000 points for the first time and setting a new historical high. The performance of technology stocks was particularly impressive, with star tech stocks like Tesla, Google, Amazon, Meta, and Netflix all reaching new historical highs. The strong performance of tech stocks reflects the market's confidence in the future growth of the technology sector, as well as optimism regarding these companies' innovation capabilities, profitability, digital transformation, and emerging business models. Tesla rose for the sixth consecutive trading day, reaching a peak of $424.88 during Wednesday's session, surpassing the previous intraday high set on November 4, 2021. According to the Bloomberg Billionaires Index, Musk's net worth increased by approximately $50 billion to $439.2 billion.
The performance of global assets also varied. In the precious metals market, COMEX gold futures rose by 1.29%, reporting $2753.6 per ounce, peaking at $2759.7. COMEX silver futures increased by 0.15%, reporting $32.795 per ounce. The rise in gold prices is typically associated with increased market uncertainty and demand for safe-haven assets. In the energy market, WTI January crude oil futures rose by 2.48%, reporting $70.29 per barrel. Brent February crude oil futures increased by 1.84%, reporting $73.52 per barrel. The rise in oil prices may be influenced by various factors, including changes in global economic growth expectations, geopolitical situations, and the balance of oil supply and demand.
In the cryptocurrency sector, Bitcoin has once again surpassed $100,000, and Ethereum has broken through $3,800. Eric Trump, the second son of the elected President Trump, stated on Tuesday that his father's administration will become the most cryptocurrency-friendly government in U.S. history and promised that the U.S. will play a leading role in the "digital revolution," echoing statements made by President Trump during his campaign. Eric believes that cryptocurrencies can provide financial solutions for millions of people "disappointed with the modern world." This statement undoubtedly brought a positive impact to the cryptocurrency market, enhancing investor confidence in the future development of cryptocurrencies. The rise in cryptocurrencies is related to the correlation with U.S. stocks, expectations of rate cuts, and the friendly statements from the Trump camp, but the high volatility and uncertainty in the crypto market still require cautious handling.
In terms of political and economic policies, Biden and Yellen's criticism of Trump's tariff policies reflects concerns about the potential negative impacts of trade protectionism, including effects on consumer costs and inflation control. This also indicates that the government needs to weigh various factors when formulating economic policies to achieve stability and sustainable development.
Overall, the current financial market and economic situation are filled with complexity and uncertainty. Inflation data influences the Federal Reserve's monetary policy decisions, the divergence in the stock market shows the development trends of different industries and companies, the performance of global assets reflects the supply and demand relationships of various asset classes and investor sentiment, while the statements and policy tendencies of political figures may have profound impacts on the economy and the market. Therefore, as market participants, we need to closely monitor these dynamics.

BTC Analysis: BTC rebounded overnight, aided by the enhanced expectations of rate cuts following the CPI data release, reaching a peak of around $101,888, consistent with Tuesday's prediction that "it has once again tested near the ascending trend line, with the closing price temporarily above. This is crucial for future direction; if it does not break, it is expected to continue the recent overall upward trend." The overall rhythm aligns with U.S. stocks, with the tech-heavy Nasdaq index setting a new historical high, and the S&P 500 also rising significantly, paying attention to the correlation with the crypto market.
The daily line closed with a medium-long bullish candle. Currently, the upper test of the trend indicator shows resistance, with short-term resistance continuing to reference the recent point near $104,088 and the historical high. The short-term support below references the ascending trend line support around $97,500 during its upward movement, followed by the recent two tests around $90,800. Mid-term support continues to reference around $87,000 and $85,000.
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